Death Spiral (insurance)
Death spiral is an insurance plan with costs that rapidly increase as a result of changes in the covered population. It is the result of adverse selection in insurance policies where lower risk policy holders choose to change policies or be uninsured. The term is found in the academic literature at least as early as Cutler and Zeckhauser's 1997 paper "Adverse Selection in Health Insurance" which refers explicitly to an "adverse selection death spiral".
Read more about Death Spiral (insurance): Health Insurance Spiral
Famous quotes containing the words death and/or spiral:
“So he with difficulty and labour hard
Moved on, with difficulty and labour he;
But he once passed, soon after when man fell,
Strange alteration! Sin and Death amain
Following his track, such was the will of Heaven,
Paved after him a broad and beaten way
Over the dark abyss, whose boiling gulf
Tamely endured a bridge of wondrous length
From hell continued reaching th’ utmost orb
Of this frail world;”
—John Milton (1608–1674)
“The spiral is a spiritualized circle. In the spiral form, the circle, uncoiled, unwound, has ceased to be vicious; it has been set free.”
—Vladimir Nabokov (1899–1977)